XRP is Booming! A Price Rally is Enough to Outperform Ethereum

XRP is booming! It has the potential to leave Ethereum behind

XRP has made considerable gains over the past month as traders continue to shower confidence on Ripple's potential legal win against the United States Securities and Exchange Commission (SEC).

For instance, the XRP price gained 25% thirty days after Ripple and the SEC filed for an immediate ruling on whether or not XRP sales violated U.S. securities laws. In comparison, Bitcoin and Ether are down 4% and 11% over the same period, respectively.

Bull pennants are bullish continuation patterns that form as the price consolidates in a triangle-like range after a strong upside move. In other words, they resolve after the price breaks out in the direction of its previous uptrend.

On the daily chart, XRP has been trending inside a similar technical structure since late September, as shown below. While at it, the token has also attempted to break above the pennant twice, albeit to no success. It now eyes another breakout in the coming days.

XRP's bullish technical setup receives further cues from on-chain data, showing accumulation is underway. Notably, XRP's mean coin age — the average age of all tokens on the blockchain measured by the purchase price — has been rising since September, according to data from Santiment. The metric theoretically suggests that XRP users have been increasingly holding the tokens.

In addition, data tracker Whale Alert detected millions of dollars' worth of XRP withdrawals across Bitstamp, Bitso, and other crypto exchanges, reducing the supply that can be potentially sold. Notably, investors have moved a total of $126 million worth of XRP from sales to unknown wallets since Oct. 14. In comparison, $78.99 million price of XRP was deposited into these exchanges.

One of Ripple's core arguments is a speech by former SEC director William Hinman at the Yahoo Finance All Markets Summit in 2018. Hinman said Ethereum was not security despite conducting an initial coin offering (ICO) round to raise funds.